Motor insurer Highway will allow policies to lapse if brokers fail to get in touch with the insurer within the month before renewal is due.
Highway said the move was a result of the increasing pressure on motor insurers since the launch of the motor insurance database (MID).
Highway technical underwriting manager David Murray warned brokers: “The simple fact is that we cannot comply with our new obligations unless brokers get information to us in a timely fashion.
“This could mean we will have to stop trading with brokers who cause us to fail in our compliance.”
Motor insurers face potential fines of up to £75,000 if they fail to comply with MID standards.
